Mind The GAAP: Full Series

MIND THE GAAP is a special series that covers the transition from Indian GAAP to IND-AS, examines the key areas of change and analyses the impact on India Inc!

Mind The GAAP: Key Areas Of Change

In about 8 months from now over 660 listed companies in India will adopt new accounting standards, IND-AS. How will this impact their financials? Should we prepare for lower revenues, more consolidation, new liabilities, P&L injuries, costlier M&A, higher employee compensation and voluminous disclosures? Is India Inc ready to Mind The GAAP?

This special series will cover India Inc’s journey from Indian GAAP to the new IND-AS. Over the next few weeks we will examine the key areas of change and analyse the impact on India’s top companies!

This single accounting standard can determine whether Indian business groups are about to get bigger or smaller. On the second episode of Mind The GAAP we examine the new Indian Accounting Standard (IND-AS 110) on CONSOLIDATION. In english that means which entity is or is not part of the business group. On this discussion joining CNBC TV18’s Menaka Doshi are VS Parthasarathy, Group CFO & Group CIO - M&M, Sai Venkateshwaran, Partner & Head, Accounting Advisory Services – KPMG and Sumit Seth, Partner & IFRS leader – Price Waterhouse.

Mind The GAAP on Revenue Recognition

Over 120 countries have adopted IFRS. India will do so starting next year. But when it does so, India will be among the first major jurisdictions to adopt the IFRS revenue recognition standard. It’s new, it’s complex and it’s going change how we view topline forever. In this episode of Mind The GAAP, Menaka Doshi of CNBC TV18, discusses revenue recognition with Tata Power CFO, Ramesh Subramanyam, PR Ramesh, Chairman, Deloitte India and Vishesh Chandiok, CEO, Grant Thornton India.

Mind The GAAP on Financial Instruments-(1)

Equity shares with put options are debt, reedemable preference shares are debt and compulsorily convertible debentures are equity. The new accounting standard could change how corporate India raises money. In this episode of Mind The GAAP, Menaka Doshi of CNBC TV18, discusses financial instruments with Jamil Khatri, Head – Audit, KPMG in India and Sandip Khetan, Partner, EY.

Mind The GAAP on Financial Instruments - (2)

Last week on Mind The GAAP we discussed the new Indian Accounting Standard on Financial Instruments. Corporate fundraising will now have to account for substance over form. For instance, equity shares with a put option will be accounted for as debt. The same applies to redeemable preference shares whereas compulsorily convertible debentures will counted towards debt. We also discussed fair valuing equity investments, a reality check for intra-group loans and guarantees and the impact of the expected loss model on doubtful debts. This week, Menaka Doshi of CNBC TV18 continues the conversation on financial instruments, especially derivate and hedge accounting, non-traditional instruments, de-recognition of financial instruments with Jamil Khatri, Head – Audit, KPMG, Sandip Khetan, Partner, EY and Member, ICAI Committee on IND-AS and Sumit Seth, Partner & IFRS Leader, PW gives his take on the accounting changes to Share Based Payments, including ESOPs.

Mind The GAAP on Combinations

The economics of mergers & acquisitions is about to change. Whether it’s the acquisition of a company or the acquisition of assets, there will now be one accounting treatment that will apply. Get ready for a fair value goodwill, the recognition of intangibles and charging transaction costs to the P&L! Will the new Indian accounting standard on combinations make corporate M&A more expensive? To find out, Menaka Doshi of CNBC-TV18 is joined by Seshagiri Rao, Group CFO, JSW Group, P R Ramesh, Chairman, Deloitte and Dinesh Kanabar, Founder, Dhruva Advisors.

Mind The GAAP on Tax Accounting Standards

Not only does India Inc. Have to implement new accounting standards, it also has to contend with new tax accounting standards. Well, do the boards speak the same language or will money, serious amounts of it, be lost in translation.

This week we focus on the 10 new tax accounting standards that are effective this year and to discuss the implications Menaka Doshi of CNBC TV18 is joined by S Gayathri, Head of Taxation, Essar Group, Vineet Agarwal, Head of Taxation, JSW Steel and Vishal Shah, Tax Partner, PwC.